Nearly 90% of Businesses Report Revenue Losses From Fraud, AI Part of the Problem and the Solution

A key part of any business’ physical security posture is designed to limit theft and fraud. But much of any organization’s vulnerability stems from online and cyber vectors. A new report show how much that threat is actually costing them. The Veriff Fraud Industry Pulse Survey 2024, which surveyed hundreds of senior decision-makers and fraud leaders across various sectors, found nearly 90 percent of business leaders reported that fraud accounts for up to nine percent of their annual revenue. It also looked at AI’s role in exacerbating and mitigating the threat.

Key findings from the survey reveal that 87 percent of respondents experienced an increase in online fraud over the past year, and nearly 90 percent reported revenue losses between 1 percent and 9 percent. For a company with $100 million in annual revenue, this could translate to a loss of up to $9 million.

“AI is a growing threat as it has been weaponized by fraudsters, but it is also an opportunity to fight against fraud,” said Ira Bondar, Senior Fraud Group Manager at Veriff. “About 78 percent of decision-makers noted an increase in AI-driven fraud, while 79 percent are using AI and ML to enhance their fraud prevention efforts, from identifying fraud patterns to automating the customer identity verification process for more robust checks.”

The survey also highlights that US businesses are strengthening their defenses, with 96 percent planning to increase the use of Identity Verification (IDV) and biometrics in the coming year. Consumer awareness is rising as well, with over 86 percent of US fraud decision-makers noting higher demands for robust fraud prevention measures. The survey also finds that 75 percent of consumers consider a company’s fraud prevention record before using its services.